Page 10 - AsianOil Week 12 2023

AsianOil PIPELINES & TRANSPORT AsianOil

Russia top oil supplier to China

for January-February

RUSSIA RUSSIAN crude oil imports have held the top (1.72mn bpd), down by 4.7% from 14.61mn
supply spot in China for the second month in tonnes (1.8mn bpd) in January-February 2022.
xxxxxxxxxx a row, edging out China’s usual main supplier Saudi imports during last year totalled 87.49mn
Saudi Arabia, according to data made available tonnes (1.75mn bpd).
by China’s General Administration of Customs Iraq remained as China’s third-largest sup-
(GAC). plier with imports totalling 9.62mn tonnes in
Imports of Russian crude were led by Chinese the January-February period, against 10.02mn
refiners taking advantage of lower prices for the tonnes during the same time last year. The UAE
discounted oil, and future Russian crude sup- supplied 6.58mn tonnes, compared with 5.91mn
plies to China are anticipated to rise in the wake tonnes for the previous period.
of the visit to Moscow this week by Chinese Pres- Media sources have reported that China has
ident Xi Jinping, where he is expected to broaden probably saved billions of dollars by buying Rus-
energy and trade agreements with Russian Presi- sian crude at a discount. Imports are predicted to
dent Vladimir Putin. increase during the months ahead as the Chinese
Russia has sold its oil at a discount since the economy recovers from several years of Covid
early days of the Ukraine war, which began in pandemic restrictions.
February last year, after a conditional embargo China receives about a third of its Russian
was put in place by the European Union, fol- crude imports through the Skovorodino-Mohe
lowed by a ban in December 2022. During that spur pipeline that branches off to Daqing
time countries such as China and India have reg- through the East Siberia Pacific Ocean (ESPO)
ularly purchased large volumes of Russia oil at pipeline that runs some 4,000 km to the Far East-
reduced prices. The Group of Seven (G7) coun- ern port of Kozmino.
tries has imposed a price cap of $60 per barrel It is estimated that China received some
on Russian oil, but this is not being adhered to 15.5bn cubic metres of natural gas from Russia
by all buyers. during 2022 through the Power of Siberia pipe-
China imported 15.68mn tonnes line. Shipments to China via the 3,000-km pipe-
(1.95mn barrels per day) of Russian oil dur- line are expected to climb to 22 bcm in 2023 and
ing January and February 2023, compared rise to 38 bcm by 2027. Sales began in 2019 in
with 12.67mn tonnes (1.56mn bpd) for the accordance with a 30-year, $400bn supply agree-
same period in 2022, an increase of 23.8%. ment between the two countries, which are now
Last year, China imported a total of 86.2mn considering another 50 bcm per year capacity
tonnes (1.72mn bpd) of Russian oil, second pipeline through Mongolia. Meanwhile, Russian
to Saudi Arabia. gas exports to Europe, which once accounted for
For the first two months of 2023, Saudi Ara- some 40% of EU gas demand, have nearly drawn
bian oil imports amounted to 13.92mn tonnes to a halt. ™

P10 www. NEWSBASE .com Week 12 24•March•2023